Altice USA Maintains Buy Rating Despite EBITDA Miss, Powered by Strategic Initiatives and Financial Resilience

Altice USA maintains a positive long-term outlook due to strategic initiatives and financial resilience. Despite a notable EBITDA miss, the company has shown progress in broadband subscriber growth and revenue trends. Management is optimistic about achieving their 2025 EBITDA target, supported by operational efficiencies and cost reductions. The company has demonstrated resilience in subscriber retention and stable broadband ARPU, contributing to a positive outlook. Analyst Gregory Williams maintains a Buy rating with a $3.00 price target.

Altice USA (NYSE: ATUS) reported its second-quarter 2025 results, showcasing resilience in broadband subscriber growth and revenue trends, despite a notable EBITDA miss. The company's strategic initiatives and financial resilience continue to support a positive long-term outlook. Dennis Mathew, Altice USA Chairman and Chief Executive Officer, stated, "Our second quarter results reflect continued momentum across our operational and financial priorities."

The company reported a total of 4.3 million broadband subscribers, with broadband net losses of -35k, an improvement from -51k in Q2 2024 and -37k in Q1 2025. Total revenue stood at $2.15 billion, a decrease of 4.2% year over year. Net income attributable to stockholders was ($96.3) million, compared to $15.4 million in Q2 2024. Despite these figures, the company demonstrated progress in key operational areas.

Fiber growth accelerated year over year, reaching 663k fiber customers, a 53% increase compared to Q2 2024. Mobile growth also accelerated, with 546k mobile lines, a 42% increase from Q2 2024. The company expanded penetration of new and existing value-added services, including Total Care and Whole Home Wi-Fi, which reached 90k and 31k subscribers, respectively, by the end of Q2 2025.

Altice USA implemented workforce reduction and operational efficiencies, aiming to deliver approximately $3.4 billion in Adjusted EBITDA in FY 2025. The company also secured a $1.0 billion primarily HFC asset-backed loan, further enhancing its capital structure.

Analyst Gregory Williams maintains a Buy rating with a $3.00 price target, reflecting optimism about Altice USA's ability to achieve its 2025 EBITDA target. The company's stable broadband ARPU and subscriber retention contribute to a positive outlook.

References:
[1] https://investors.alticeusa.com/news-events/press-releases/detail/221/altice-usa-reports-second-quarter-2025-results